Shares in Chinese group-buying site Pinduoduo soared following the company’s initial public offering in New York on Thursday, with investors showing strong demand for the company many believe could be poised to rival e-commerce giants JD.com and Alibaba.
The company, sometimes described as China’s answer to Groupon, priced at the top of its range at $19/share. The stock jumped 39% to $26.50 on opening on the Nasdaq, before closing at $26.70, according to the Wall Street Journal.
In total, Pinduoduo took in $1.63 billion from its first day of trading and has said that there is the possibility to sell additional shares which could raise a further $244 million. The company earned a valuation of $33 billion after the debut.
Pinduoduo joins a long and growing list of Chinese online startups with eyes set on IPOs. Delivery service Meituan Duanping, Tencent Music, ride-hailing app Didi Chuxing and news site Jinri Toutiao have all made plans to go public, some as early as next month.